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MyEconLAb Chapter 28 Problems

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Question;28-1. The following table depicts the output of a firmthat manufactures computer printers. The printerssell for $100 each.Calculate the marginal physical product and marginalrevenue product at each input level above10 units. (See page 620.)28-2. Refer back to your answers to Problem 28-1 inanswering the following questions. (See pages620?622.)a. What is the maximum wage the firm will bewilling to pay if it hires 15 workers?b. The weekly wage paid by computer printermanufacturers in a perfectly competitive marketis $1,200. How many workers will theprofit-maximizing employer hire?c. Suppose that there is an increase in the demandfor printed digital photos. Explain the likelyeffects on marginal revenue product, marginalfactor cost, and the number of workers hired bythe firm.28-4. Explain how the following events would affect thedemand for labor. (See pages 621?622.)a. A new education program administered by thecompany increases labor?s marginal product.b. The firm completes a new plant with a largerworkspace and new machinery.28-8. A firm hires labor in a perfectly competitive labormarket. Its current profit-maximizing hourly outputis 100 units, which the firm sells at a price of$5 per unit. The marginal physical product of thelast unit of labor employed is 5 units per hour.The firm pays each worker an hourly wage of $15.(See pages 626 and 633.)a. What marginal revenue does the firm earnfrom sale of the output produced by the lastworker employed?b. Does this firm sell its output in a perfectly competitivemarket?28-12. A profit-maximizing monopolist hires workers in aperfectly competitive labor market. Employing thelast worker increased the firm?s total weekly outputfrom 110 units to 111 units and caused the firm?sweekly revenues to rise from $25,000 to $25,750.What is the current prevailing weekly wage rate inthe labor market? (See page 621.)28-14. The current market wage rate is $10, the rentalrate of land is $1,000 per unit, and the rental rate ofcapital is $500. Production managers at a firm findthat under their current allocation of factors ofproduction, the marginal physical product of laboris 100, the marginal physical product of land is10,000, and the marginal physical product of capitalis 4,000. Is the firm minimizing costs? Why orwhy not? (See page 634.)31-4. Consider the diagram below, which displays themarginal cost and marginal benefit of water pollutionabatement in a particular city, and answerthe following questions. (See page 692.)no daiagram given.a. What is the optimal percentage degree of watercleanliness?b. When the optimal percentage degree of watercleanliness has been attained, what cost will beincurred for the last unit of water cleanup?

 

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